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Different models of competition between firms

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Reference no: EM13991213

Management Economics Competition

Research several of the different models of competition between firms that are highly interdependent (note: there are over a dozen so you should have no problem finding many different models to examine).

Discuss the similarities and differences between these special models. Be sure to explain the different circumstances where one model might be more appropriate to use than another.

Write up your report in a 500 to 750 word paper

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The demand for the deviant firm's output is much more elastic than the industry demand, given the constant output of the other firm, and the deviant firm's marginal revenue, denoted by MR is also much flatter and closer to the firm's demand curve when it increases its output beyond that agreed to in the collusive arrangement. The collusive demand and marginal revenue curves are given by the dotted lines in the figure extending downward to the right from point APA, 600 words

Reference no: EM13991213

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